In the beginning of May, Iron ore Pellet manufacturers based in the state of Odisha, have maintained prices of the raw material, at levels equal to the last week of April.
Prices of Pellet with Fe% 63 is being quoted in the range of Rs 7,700-7,800/MT Ex works Barbil (Odisha), loaded to wagons.
Looking at the current scenario, Pellet is being offered on a minimum discount i.e. Rs 50/MT on purchases for 5 rakes (20,000 tons).
Demand is as it was and a sharp drop in domestic prices of sponge iron, which is presently standing at levels seen two year back, have resulted in buying volumes of Pellet, to come down.
Negative sentiments are built up at the moment due to continuous drop in steel prices, starting from raw materials to finished products.
This has limited the buying interest from the few operational sponge iron units, running at minimum production capacities.
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